celestial system of the solar system

Chapter 153 Competing Offers
"Competing Offer!"

After hearing Luo Yi's answer, Wang Chenglin was a little disappointed.

The so-called competitive offer means that after an investor initiates a tender offer, others subsequently launch a targeted tender offer.

This kind of competitive offer can be initiated by the chairman of the company in order to defend the company's controlling interest, or by a "white knight" at the request of the board of directors or the chairman, or by an unrelated third party.And there can be more than one competing offer.

Defending a controlling stake in a company by launching a competing bid is the right response, but capital is at stake.

Whether it is the chairman's own money or the money of the white knight, there must be money.

However, Wang Chenglin has neither liquidity nor an alliance willing to act as a white knight.

Wang Chenglin calmly reminded Luo Yi: "To initiate a tender offer, no less than 20% of the total purchase price must be deposited as a performance bond in a bank designated by the securities registration and settlement agency. How much can you help me with?"

Luo Yi said: "All."

Wang Chenglin calculated.

Before Wang's company was attacked maliciously, its market value was close to 50 billion.After that, the stock price avalanche, less than one-tenth of the previous one.

Wang Chenglin currently owns 19% of the company's shares, and can offer another 10%.

Considering that the tender offer usually has a premium of 30-40%, and the higher the premium, the more likely it will be successful, then the total purchase price can be preliminarily estimated to be 7000 million, and the performance bond is 400 million.

After thinking about it, Wang Chenglin felt that what he said just now was ambiguous, so he said to Luo Yi earnestly: "Even if you can settle all the performance bond, and when it expires, I can make up more than 5000 million from the mortgage of the real estate. Reliable."

"Under normal circumstances, the conditions of a tender offer cannot be changed, but after a competing offer appears, the conditions of a tender offer can be changed."

"That is to say, if I put forward a competing offer, the Feng family can raise the purchase price. And once I follow up, the Feng family can continue to raise the price. Compared with the amount of funds, how can I beat the Feng family?"

Maybe it was because he felt that saying this was "increasing the morale of the enemy and destroying his prestige", so Wang Chenglin explained it to Luo Yi embarrassingly.

"A lot of the family's spare money is invested in the 'irrevocable fund' set up for Wang Wei. Then I buy a house, a car and daily consumption, so the family doesn't have much cash."

Luo Yi didn't interrupt Wang Chenglin halfway, but listened to him respectfully.

After Wang Chenglin finished speaking, Luo Yi said, "I have money."

Wang Chenglin fell silent, because he began to think about the question "Is Luo Yi a fool?"

Seeing this, Luo Yi said sincerely: "Even if the two parties continue to compete, causing the purchase price to rise to the price before the stock plummeted, I can still pay the money needed for the 'competitive offer'."

Luo Yi earns 1000 million a day.This income is mainly divided into two parts.

Part of it is RMB cash.

Some of it was deposited in domestic banks, while others were kept in private warehouses.

Luo Yi was worried that depositing a large amount of cash in the bank would cause unnecessary attention from the relevant departments.However, Luo Yi has an upstart mentality and doesn't care about losing interest.Therefore, after the bank deposit reaches more than 3000 million, the RMB cash is no longer deposited in the bank, but is placed in a private warehouse and withdrawn as needed.

The other part is M gold O yuan in the offshore account.

Although the supplies needed by the Pengdu Tribe and Dyson Ball World all use the money in this account, the sum of the two only consumes less than 4% of the total.Now the money in the offshore account has exceeded [-] million when converted into HKD.

If this acquisition happened in the mainland, Luo Yikong would have nothing to do if he had money.However, HK has no strict restrictions on foreign exchange control, which is easy to operate.

If the competition between the two parties causes the purchase price to rise to the price before the stock plummeted, although Luo Yi is unable to pay the full amount now, he still has a daily income of 1000 million, and he still has a lot of time left.

The Feng family just proposed a tender offer to the board of directors of Wang's company and applied to the HK Securities Regulatory Commission, and Wang's company also made an announcement in accordance with regulations.The actual implementation of the tender offer still needs to wait for the approval of the HK Securities Regulatory Commission, which means it will take at least a week.

The acquisition period stipulated in the acquisition offer shall not be less than 30 days and shall not exceed 60 days.That is to say, when the official payment is made, Luo Yi can have up to [-] million.

Wang Chenglin has always prided himself on his quick thinking, but after listening to Luo Yi's "I'm Rich", he had to suspect that he was getting old.Because Wang Chenglin's head was in a mess at the moment, he had to calm down and do some serious calculations in his head before he could figure out how much money Luo Yi had.

After calculating the answer, Wang Chenglin was even more disappointed.

Having [-] million assets and being able to come up with [-] million cash are two completely different concepts.

For example, Wang Chenglin himself.

Before the stock price of Wang's company plummeted, Wang Chenglin's net worth exceeded one billion.

However, Wang Chenglin's bank deposits are only in the early million.Give him some time to mortgage or sell real estate, jewelry and antiques, which can probably be tens of millions.

Unless Wang Chenglin is willing to pledge the shares of Wang's company to the bank.Otherwise, under normal circumstances, it would be very difficult for Wang Chenglin to come up with [-] million cash even if it took him two or three months to raise funds.

Wang Chenglin really couldn't believe that Luo Yi could come up with [-] million cash.

Wang Chenglin didn't know whether Luo Yi was crazy, stupid or a liar, but he was really not interested in continuing to discuss this topic.

Wang Chenglin smiled perfunctorily.

"That's fine. In terms of details, when the time comes, you send someone to Wang's company to discuss in detail, and I will notify the director of the office and let him be in charge of reception."

Luo Yi keenly felt that Wang Chenglin's attitude had become cold.

He thought for a while, and then he understood why Wang Chenglin was like this: a poor boy from a neither rich nor noble family, who had only been in society for more than two months, boasted that he could give out [-] million in cash... to replace him with Luo before he got the system. Yi, he didn't believe it either!
Wang Chenglin was considered well-bred, and Luo Yi might be kicked out if he were someone else.

But understanding is all about understanding, and Luo Yi can't be willing to put a hot face on someone's ass.But the problem is that Luo Yi is even more unwilling to make Wang Wei worry about it.

So Luo Yi calmly and reservedly said to Wang Chenglin: "Uncle Wang, when the company faces a hostile takeover, you can ask the white knight to fight against the black knight."

"Otherwise, I will act as the white knight and initiate a competitive offer. This matter is on my shoulders, and you don't have to worry about the rest."

Thinking of the conditions put forward by the Feng family, Luo Yi couldn't help feeling angry, so he added loudly: "I'm going to make a tender offer of 29% at the beginning."

"If the acquisition price returns to the stock price before the crash because of competition, then I will buy at least 15% of the shares."

"At that time, all the stocks will be given to Wang Wei as a bride price!"

Wang Chenglin laughed.

This kid is even more ruthless than the Feng family.

(End of this chapter)